The multi-billion dollar two-way takeover battle between EMI and Warner Music has intensified in the past 24 hours after both music groups rejected sweetened bids from the other. EMI branded Warnerâs latest offer âwholly unacceptableâ.

The takeover battle has been raging since UK group EMI had an initial approach for Warner worth $4.4bn (€3.5bn) rejected in early May. Warner responded by making a rival takeover proposal worth 315p per share for EMI a month later in a move that valued the UK company at £2.5bn (€3.6bn). EMI rejected the approach.

EMI said today that Warner last night rejected a sweetened offer worth $4.6bn, or $31 per share and countered with a fresh proposal to acquire EMI for 320p per share, valuing EMI at £2.54bn.

EMI said its board unanimously rejected Warner’s proposal, given “EMI’s prospects, the potential synergy benefits of a combination of the two companies and the range of strategic options available to EMI”.

EMI confirmed for the first time, in a move predicted by equity analysts, that its higher offer would be funded by a mixture of debt and a rights issue. It also said it will dispose of some of its music publishing assets if the deal is successful.

The UK company added that its own offer would deliver “far superior value to EMI’s shareholders”.